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April 26, 2007


Stock Du Jour (AMZN) & Random Observations

Market was pretty mixed in the morning but the buying kicked in around noon and was strong all afternoon. Looks like every single Short and UltraShort ETF made the new lows list. Young QID has overtaken the QQQQ — I made the point long ago, why trade the Q’s when you can double your leverage in the QID? (The QLD is not particularly liquid if you were wondering.)

Amazon (AMZN) was the stock du jour, doing over 250,000 trades. It popped after the close on Tuesday and continued up all day Wednesday.

AMZN

Young QID, star of the show, old QQQQ slinks to the sidelines on screens around the world.

QID

This entry was posted on Thursday, April 26th, 2007 at 7:53 am (utc+8) and is filed under Trading and Investing.

3 Responses to “Stock Du Jour (AMZN) & Random Observations”

  1. Bhh said:
    April 26th, 2007 at 10:09 am

    I’ve been scorched by QID a couple times. Ouch. Never again. Can one of these inverse guys go to zero?

  2. C. Maoxian said:
    April 26th, 2007 at 10:29 am

    Bhh: Yes it could go to zero but it won’t. ;-)

  3. Born2Code said:
    April 26th, 2007 at 10:41 pm

    i do not think they can go to zero.
    the prospectus states that the goal is to achieve the inverse of the DAILY percentage move. Double that in the case of the QID and the other ultras.
    because it is based on the daily moves the long term results will not necessarily be what you expect. for example erratic price pattern may have the QLD lagging the QQQQ over long periods of time.
    This and expenses is why the QLD is not that attractive as a long term hold.

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